• LinkedIn
  • YouTube
  • Twitter
  • Facebook
  • Google+

How can employers get waivers of claims from terminated employees?

by on
in Employee Benefits Program,Firing,Human Resources

Q. May an employer fire an employee and then ask the employee to sign a waiver of claims or severance agreement?

A. Yes. For a waiver of claims to be enforceable, the employer needs to provide “consideration”—something to which the employee would not otherwise be entitled. Typically, the consideration is severance pay, continued benefits payments or both. If the employer has a policy of paying severance without getting a waiver of claims, it would have to pay the employee extra severance or give something else of value in order to get a waiver of claims. Of course, if the employee wishes to forgo the consideration, he or she is not obligated to sign a severance agreement.

Final note: Special rules apply for older employees—consult your attorney.

Like what you've read? ...Republish it and share great business tips!

Attention: Readers, Publishers, Editors, Bloggers, Media, Webmasters and more...

We believe great content should be read and passed around. After all, knowledge IS power. And good business can become great with the right information at their fingertips. If you'd like to share any of the insightful articles on BusinessManagementDaily.com, you may republish or syndicate it without charge.

The only thing we ask is that you keep the article exactly as it was written and formatted. You also need to include an attribution statement and link to the article.

" This information is proudly provided by Business Management Daily.com: http://www.businessmanagementdaily.com/3622/how-can-employers-get-waivers-of-claims-from-terminated-employees "

Leave a Comment